Speaker Velasco lauds PRRD's signing of Coco Levy Trust Fund Act
Speaker Lord Allan Velasco lauded President Rodrigo Roa
Duterte for signing into law Republic Act 11524 or the Coconut Farmers and
Industry Trust Fund Act.
“We express our sincerest gratitude to President Duterte for
signing into law this landmark legislation that would create a trust fund to
finally allow farmers to directly benefit from the multi-billion-peso coconut
levy funds collected during the Marcos era,” the House leader said.
“Indeed, this is a monumental moment for more than three
million coconut farmers, who have long been denied of the fund that rightfully
belongs to them,” he added.
As one of the principal authors of the measure in the House
of Representatives, Velasco expressed hope “this long-overdue legislation will
help change the lives of poor coconut farmers and their beneficiaries.”
The law is expected to benefit around 3.5 million coconut
farmers from 68 coconut-producing provinces, who own not more than five
hectares of farmland.
It aims to increase the income of coconut farmers, alleviate
poverty and promote social equity, and rehabilitate and modernize the industry
towards farm productivity.
Under the new law, the trust fund will be maintained for 50
years under the Coconut Farmers and Industry Development Plan to be formulated
by the Philippine Coconut Authority.
The law mandates the Bureau of Treasury to transfer P10
billion to the trust fund in the first year; P10 billion in the second year;
P15 billion in the third year; P15 billion in the fourth year; and P25 billion
during the fifth year.
Some P5 billion from the trust fund will be used upon
enactment of the law for programs such as planting and replanting of hybrid
coconut seedlings, training of coconut farmers and their families, among
others.
The Department of Finance shall be designated as the manager
of the trust fund.
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